As life changes, so do your insurance needs. While term life insurance may have been the appropriate choice for your situation when you purchased it, whole life coverage might be better suited to your current circumstances and financial goals. Fortunately, many term life plans are designed to be convertible, which means they can easily be switched over to a permanent policy. Here are a few reasons it could make sense to replace your temporary life insurance policy with coverage that will last the rest of your life.

When Should You Consider Switching to Whole Life Coverage?

1. You’re in a Better Financial Situation

Whole life coverage can cost quite a bit more than term life insurance. Thus, it’s not uncommon for numerous people to choose the less expensive option when they first purchase a policy. Now, you may be in a better position with your finances and have the means to pay for a permanent policy. Depending on what you can comfortably afford, you may convert all or only some of your term policy.

2. You Have Health Problems 

If your health has declined since buying a term policy, you may no longer be eligible for life insurance coverage once your existing plan expires, or it could cost you significantly more. However, policyholders can typically convert their term life to a whole life policy without having to undergo a medical exam. It’s likely you will simply be given the same health rating you got on your term life plan. 

3. You Want a Cash Value Feature

One of the most popular reasons to switch from term life insurance to whole life coverage is the cash value feature. Part of the premium that’s paid for a whole life policy goes toward building up savings. If necessary, you can borrow against the policy’s cash value, which will continue to accrue tax-free as long as the premium is being paid. This money can be withdrawn to help pay for any unexpected expense that arises.

4. You Want to Leave an Inheritance 

Because term life insurance is temporary, there’s a good chance you will outlive your policy. Thus, there won’t be any death benefits for your family to collect. Leaving an inheritance is especially important if you have lifelong dependents, such as a child with special needs, who rely on you to provide for their needs. With whole life coverage, you can ensure they will be financially protected in the event of your death.

If you have questions about converting your term life policy to whole life coverage, the independent agents at Wilmoth Insurance Agency can help you make an informed decision. They’ve been helping Cookeville, TN, residents secure quality insurance solutions at affordable prices since 1939. With their expert guidance, you can confidently plan for a financially stable future and ensure your loved ones will be taken care of even after you’re gone. Call (931) 526-6181 to request a life insurance quote, or visit their website to learn more about the other services they offer.